BG share offer from Shell

[Londontaximan]

As a long term BG shareholder (had them about 10 years now), they haven't been too bad on the dividend front. Got the paperwork today about the Shell takeover, they're offering 383p plus 0.445 shell B shares for each BG share as the default option.
Anyone taking the cash on here or reinvesting? Also I need to read up on all this Shell A and Shell B shares thing, what's all that about ?

[Simpo Two]

Londontaximan said:

Also I need to read up on all this Shell A and Shell B shares thing, what's all that about ?

Haha, good luck understanding how Shell shares work. A degree in rocket science is the minimum requirement.

[marky1]

U.K. Residents should go with the B shares over the A.

Edited by marky1 on Saturday 2nd January 16:02

[basherX]

marky1 said:

U.K. Residents should go with the B shares over the A.

Edited by marky1 on Saturday 2nd January 16:02

Certainly true for private UK investors and most UK institutionals. As suffer Dutch withholding tax, Bs don't. So Bs effectively yield more (or the same but more easily) for UK investors. That's all you really need to know.

It's a legacy of the unification of Royal Dutch Petroleum Company* and the Shell Transport and Trading Company about a decade ago. The shares rank equally except for the tax jurisdiction from which the dividends are paid.

*really a Dutch name which means this

[Londontaximan]

So if I go for the default option I'll get a lump sum of about 6.8k plus shell shares worth about 12.2k, where as now the current BG holding is worth 17.5k, paying 330 quid in dividends last year, so an overall gain of 500 quid. But at present I don't need a new car/pay a mortgage or pay for a holiday etc, so I'd rather use the 6.8k to buy some more shares. I need to diversify from energy, my main share holding is in Centrica which are doing badly.

[33q]

I have yet to receive my official pack through the post

I had in mind to take a full cash option. The deal appears to give in total about 10% more than the current value of BG shares.

Is it sensible to take the cash option? or am I losing out by 10%?

the cash would be handy as I have some credit card stoozing deals coming to an end and my major landscape of the garden should start in Feb